Washington. The Inter-American Development Bank said Saturday that leaders of 10 multilateral development banks committed to taking action in five critical areas, including additional lending space totaling $300 billion to $400 billion over the next decade.
The effort comes amid growing calls for these institutions to boost concessional financing to developing countries, which face greater challenges in the climate transition and are more affected by the higher global interest rate environment.
“Together we can achieve more, with greater impact and on a larger scale,” said IDB President Ilan Goldfajn.
Following a retreat held in Washington at IDB headquarters, on the sidelines of the spring meetings of the International Monetary Fund and the World Bank, the MDBs said the agreed plan involves “joint steps to work more effectively as a system,” he reported. Reuters on Wednesday.
The group includes institutions such as the World Bank Group, the New Development Bank, the Asian Infrastructure Investment Bank, the European Investment Bank and the African Development Bank.
The IDB noted in a statement that the increase in financing capacity will be supported by the offer of innovative financial instruments and the promotion of the channeling of the IMF’s Special Drawing Rights (SDR) through the MDBs.
The IDB also foresees actions “that provide more clarity on callable capital, which would help rating agencies better evaluate the value of callable capital.”
The MDBs also committed to advancing action on climate change, providing for a common approach to measuring climate outcomes on adaptation and mitigation, and to jointly report on climate finance.
The other pillars of work agreed this Saturday include strengthening collaboration and co-financing at the national level, catalyzing the mobilization of the private sector and improving the effectiveness and impact of development.
#Multilateral #development #banks #increase #loans #billion #dollars
– 2024-04-21 21:36:27
